Kesko enters into a long-term US loan arrangement

On 10 June, Kesko Corporation issued a private placement of USD 120 million. The arrangement consists of three bullet loans: a 10-year loan (USD 60 million), a 12-year loan (USD 36 million) and a 15-year loan (USD 24 million). Kesko has hedged the loan by using currency and interest rate swap agreements, as a result of which the loan capital totals EUR 100.4 million and the fixed capital-weighted average interest rate is 5.4%.

The loan was arranged by Citigroup and subscribed for by US insurance companies. The loan is unsecured and does not have a public quotation. The terms of the loan include covenants that protect investors in conformity with market practice. The proceeds of the loan offering will be used for general corporate purposes, including repayment of short-term loans. Kesko’s intensive investment programme implemented during the last few years has increased the consolidated balance sheet total and long-term real estate properties. The loan arrangement will correspondingly extend the maturity of the Group’s loan portfolio and decrease the sensitivity of the Group’s financing costs to interest rate volatility.

Further information:
Treasurer Heikki Ala-Seppälä, Kesko Corporation, tel. +358 1053 22528

Kesko Corporation
Corporate Communications

Jukka Pokki
IR-manager

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